• The Euro is correcting higher against the Pound amid hopes of a peace deal in Ukraine.
• The broader trend remains bearish after having depreciated nearly 1.4% in one week.
• A bearish move below the 0.8600 area would confirm a double top at 0.8740-0.8750.

The Euro is posting minor gains against the British Pound on Monday, correcting higher after having depreciated nearly 1.4% over the last week. The pair, however, remains capped below Thursday’s high, at 0.8625.

The pair is drawing some support from the moderate optimism about the outcome of a meeting between US President Donald Trump and Russia’s leader, Vladimir Putin, who will try to find a way to end the war in Ukraine.

It is unlikely that today’s summit will bring any breakthrough, but investors will welcome a second meeting, including Ukrainian President Zelenskyy, as a positive outcome. So far, Trump has sounded confident about a positive outcome of today’s encounter, which keeps investors hopeful

Technical Analysis: Potential double top at 0.8740-0.8750

From a technical perspective, the EUR/GBP pair maintains its near-term bearish trend intact. Price action is testing a key support area at 0.8610, which would activate a Double Top at the 0.8740-08750 area. This is a common figure from trend shifts, and might signal a deeper correction from the June-July rally.

The Double-top figure would be confirmed on a successful move below the July 7 low, at 0.8595. Further down, the 0.8560-0.8570 area (June 23 highs-July 1 lows) might provide some support. The DT’s measured target is at the 0.8500 area.

On the upside, the pair needs to extend gains beyond the mentioned Thursday’s high, at 0.8625, to clear the way towards the August 12 high of 0.8655, and the  August 5 low, at 0.8680.